The Malta Independent 27 May 2024, Monday
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Gaffarena property deal ‘institutionalised corruption’; Busuttil says buck stops with PM

Sunday, 14 June 2015, 11:37 Last update: about 10 years ago

PN leader Simon Busuttil said Parliamentary Secretary Michael Falzon admitted that he went on a hunting trip with Mark Gaffarena – who made a killing out of an expropriation deal - and allowed him to identify and choose pieces of land in compensation for his part ownership of a property in Old Mint Street in Valletta.

Interviewed by journalist Charmaine Parnis on the PN’s radio station this morning, Dr Busuttil said the buck stops with the Prime Minister and both he and Dr Falzon should shoulder political responsibility for the deal which saw Gaffarena make €1.65 million in the sale of his share of the property.

The property is due to house the Malta Building Industry Consultative Council.

“After saying he was not involved in the controversial Mint Street property deal, Dr Falzon has now admitted that he met with Gaffarena at Castille, went on a hunting trip with him, and that Gaffarena approached the government to sell the properties to government.

“He has also admitted that an employee of his accompanied Gaffarena to the Lands’ Department and gave him the opportunity to choose the properties and that he (Falzon) signed the deal,” the PN leader highlighted.

Dr Busuttil said that all these controversial cases uncover what is referred to as “institutionalised corruption”, meaning that such irregularities take place with the government’s blessing.

Therefore, both the Prime Minister and Dr Falzon should shoulder political responsibility, especially in the light of the fact that the Lands Department falls under Dr Muscat’s remit, Dr Busuttil said.

Mint Street property deal bigger than one initially thought

Dr Busuttil went on to explain why the Old Mint Street property deal is much bigger than initially thought.

“Gaffarena approached the government to sell a quarter of a property – what interest would the government have in purchasing a quarter of a property when the government holds the lease on the property for at least another 13 years?

 “Gaffarena approached the government a second time to sell another part of the property and the government paid him another substantial sum, over €800,000.

“Why did this happen when this property is of no interest for the government,” Dr Busuttil asked.

Dr Busuttil referred to the fact that Dr Muscat said he will reverse the controversial deal if any wrongdoing is found.

“It is highly evident there is something wrong, Dr Muscat and you should shoulder political responsibility. You needn’t investigate further since from the outset, there was a smell of corruption. You have to be blind not to notice there’s corruption in this case,” Dr Busuttil said.

To add insult to injury, Dr Busuttil continued, Gaffarena was also given two pieces of land and a third plot by the government. He pointed out that they were worth much more than Lands Department architects had valued them at.

“These plots are as big as seven football pitches and are near a property Gaffarena owns,” he said, referring to the illegal entertainment complex known as Tac-Cavett at Tal-Handaq, Qormi. The pieces of land Dr Busuttil referred to are situated a stone’s throw away from each other and are in Qormi and Zebbug.

Dr Busuttil also referred to other pieces of land which were ‘given’ to Gaffarena by the government – a Sliema property and land in White Rocks, Bahar ic-Caghaq.

“There’s a pattern, Dr Busuttil said, whereby the Prime Minister first engages in irregularities and  the minute he is caught out, tries to play innocent and comes out with statements such as ‘if I find something irregular I will reverse the expropriation deal’.”

“You have to do things well from the very beginning and if you don’t, you must carry political responsibility. This is not a mistake it was thought out,” Dr Busutil said.

“Should someone be given over €800,000 for a quarter of a property?” Dr Busuttil asked, pointing out once again that Gaffarena was given the opportunity to choose the properties in question.

“This is the first time that a Prime Minister held the Lands’ Department and Mepa under his watch. No wonder he held on tight to these government entities,” Dr Busuttil said.

Dr Busuttil went on to explain that the PN will issue a new code of ethics which a PN government would implement if elected to office.

“Muscat is eating away the confidence the public has in politicians,” he said. “Our new code of ethics will change that,” he added.

Zonqor Point saga

On Zonqor Point, Dr Busuttil said that the same style of politics used in the Australia Hall, Cafe Premier and Gaffarena controversial deals is being used in the Zonqor Point case.

The government has proposed that a new private university is developed on virgin land in Zonqor Point.

“How can you give out public land to someone without giving the chance to others to invest by failing to issue a public call?” Dr Busuttil asked.

Dr Busuttil urged the public to rise to the occasion and voice concern over the Zonqor Point issue, while pointing out that the Opposition is doing its utmost to scrutinise the government.

He said that he would be supporting the Front Harsien ODZ protest to be held on Saturday in Valletta.

PL reacts

Reacting to the Dr Busuttil’s speech, the PL said in a statement that it is ironic of a leader to speak about institutionalised corruption when he is the boss of Giovanna Debono.

The PL said that the government investigates serious allegations, such as the ones made by the whistleblower in the Gozo votes for works case, opposed to the PN which closes an eye.

 

As for the Mint Street property issue, the PL said that the Opposition is doing its utmost to prevent the truth from coming out as a result of the investigations which are under way and as usual, Dr Busuttil is acting as judge and jury.

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